STA.L Regulatory News (STA)

8 January 2014 The ManagerCompany AnnouncementsAustralian Securities Exchange LimitedLevel 6, 20 Bridge StreetSydney NSW 2000 Via E-lodgement Guatemala Update Range Resources Limited ("Range" or "the Company") would like todraw attention to the announcement released today by Citation ResourcesLimited (ASX: CTR) with respect to the Company's interest in Guatemala withthe following highlights: - The Harold Lee 500 rig now set up on the Atzam #5 drill pad, following the recent completion of location site works - The rig's drilling mast is set in place, with auxiliary equipment now being connected to the rig to enable commencement of drilling operations - The rig is expected to be drilling ahead towards the initial reservoir targets in 3-4 days - Drilling schedule for Atzam #5 is 40 days to total depth target of 4,100 feet - Primary reservoir targets are the C17, C18 and C19 carbonate sections - Atzam #5 well to target the same carbonate reservoir targets as the Atzam #4 production well - 2.3m barrels of 2P reserves which excludes the C18 and C19 carbonate sections in Atzam #4 - Atzam #4 continues to be produced on a highly restricted choke (12/64 inch) to manage the reservoir integrity, still with no water production to date - Significant exploration potential on Atzam Oil Field - unexplored salt dome and anticline structures to be evaluated and tested through 2014 Range has a direct and indirect 32% interest in the Guatemalan Project. Further details are contained in the Citation Resources announcement, whichcan be accessed at: http://www.citation.net.au/media/articles/ASX-Announcements/20140108-Atzam-5---Rig-Set-Up-On-Location--259/CTR-14-Atzam-5-Rig-Set-Up-On-Location.pdf Yours faithfully Peter LandauExecutive Director ContactsRange Resources Limited PPR (Australia)Peter Landau David TaskerT: +61 (8) 9488 5220 T: +61 (8) 9388 0944E: plandau@rangeresources.com.au E: david.tasker@ppr.com.au GMP Securities Europe LLP RFC Ambrian Limited (Nominated Advisor)(Joint Broker) Stuart LaingRichard Greenfield / Rob Collins / T: +61 (8) 9480 2500Alexandra CarseT: +44 (0) 207 647 2800 Fox-Davies Capital Limited (Joint Broker) Old Park Lane Capital (Joint Broker)Daniel Fox-Davies / Richard Hail Michael ParnesT: +44 (0) 203 463 5000 T: +44 (0) 207 493 8188 Dahlman Rose & Company (Principal American Liaison)OTCQX International Market (U.S.)Christopher Weekes / Stephen NashT: +1 (212)-372-5766 Range Background Range Resources Limited is a dual listed (ASX:RRS; AIM:RRL) oil & gasexploration company with oil & gas interests in Trinidad; Puntland, Somalia;the Republic of Georgia; Guatemala; Texas, USA, and Colombia. - In Trinidad Range holds a 100% interest in holding companies with threeonshore production licenses and fully operational drilling subsidiary.Independently assessed Proved (P1) reserves in place of 17.5 MMBO with 25.2MMBO of proved, probable and possible (3P) reserves and an additional 81 MMBOof unrisked prospective resources. Range also has a farm in with NikoResources giving it exposure to circa 280,000 acres of prospective onshore andoffshore acreage. - In the Republic of Georgia, Range holds a 45% farm-in interest in onshoreblocks VIa and VIb, covering approx. 7,000sq.km. The Company is focussing on arevised development strategy that will focus on low-cost, shallow appraisaldrilling of the contingent resources around the Tkibuli-Shaori ("Tkibuli")coal deposit, which straddles the central sections of the Company's twoblocks, along with attracting potential farm-in partners across the licenseareas given the recent review performed across the licenses. - In Puntland, Range holds a 20% working interest in two licenses encompassingthe highly prospective Dharoor and Nugaal valleys. The operator and 60%interest holder, Horn Petroleum Corp. (TSXV:HRN) has completed two explorationwells and will continue with a further seismic and well program over the next12-18 months. - Range is earning a 65% (option to move to 75%) interest in highlyprospective licences in the Putumayo Basin in Southern Colombia. The Companywill undertake a 3D seismic programme as part of its exploration commitmentson the Company's Colombian interests. Farm–in interest from a number ofparties has been received and preparations for the seismic programme will beinitiated subject to further financing becoming available. - Range has taken a strategic stake (19.9%) in Citation Resources Limited(ASX: CTR) which holds a 60% interest in Latin American Resources (LAR). LARholds an 80-100% interest in two oil and gas development and explorationblocks in Guatemala with Canadian NI 51-101 certified proved plus probable(2P) reserves of 2.3 MMBBL (100% basis). Range also holds a 20% interest inLAR. Table of Reserves and Resources Detailed below are the estimated reserves for the Range project portfolio. Gross Oil Reserves Range's Net AttributableProject 1P 2P 3P Interest 1P 2P 3P OperatorOil & NGL - mmbblsTrinidad 17.5 20.2 25.2 100% 17.5 20.2 25.2 RangeGuatemala * 2.3* * 32% * 0.74* * Latin American ResourcesTotal Oil & 17.5 22.5 25.2 17.5 20.9 25.2LiquidsGas Reserves -BcfGeorgia - CBM - - 508 45% - - 229 Strait Oil & GasTotal Gas - - 508 - - 203Reserves * The reserves estimate for the Guatemalan Blocks in which LAR (and CTR) havean interest in is as reported by CTR. CTR has not reported 1P and 3Pestimates, but Range is seeking such information from CTR for future reportingpurposes. Detailed below are the estimated resources and oil-in-place delineated acrossRange's portfolio of project interests. Gross Oil Resources Range's Net AttributableProject Low Best/ High Interest Low Best/ High Operator Mean MeanContingent Oil Resources - mmbblsGuatemala - 20.1 - 32% - 6.4 - Latin American ResourcesTotal Contingent - 20.1 - - 6.4 -ResourcesProspective Oil Resources - mmbblsTrinidad (BM & MD) 8.1 40.5 81.0 100% 8.1 40.5 81.0 RangeTrinidad - Niko JV 20.3 101.5 203.0 40%* 8.1 40.6 81.2 RangeonshoreTrinidad - Niko JV 6.6 33.0 66.0 32.5%* 2.1 10.7 21.5 RangeoffshoreTotal Prospective 35.0 175.0 350.0 18.3 91.8 183.7ResourcesUndiscovered Oil-In-Place - mmbblsPuntland - 16,000 - 20% - 3,200 - Horn PetroleumGeorgia - 403 - 45% - 181 - Strait Oil & GasColombia - 7.8 - 65-75% - 5.1 - - Petro 5.8 CaribbeanUndiscovered Gas-In-Place - TcfGeorgia - - 18.44 - 45% - 8.30 - Strait Oil &Conventional GasGeorgia - CBM - 3.16 - 45% - 1.42 - Strait Oil & Gas *Range's interest in the Niko JV resources are subject to completing itsearn-in obligations. With the exception of Guatemala, all of the technical information, includinginformation in relation to reserves and resources that is contained in thisdocument has been reviewed internally by the Company's technical advisor, MrMark Patterson. Mr Patterson is a petroleum geologist and geophysicist who isa suitably qualified person with over 30 years' experience in assessinghydrocarbon reserves and has reviewed the release and consents to theinclusion of the technical information. The reserves estimates for the 3 Trinidad blocks have been formulated byForrest A. Garb & Associates, Inc. (FGA). FGA is an international petroleumengineering and geologic consulting firm staffed by experienced engineers andgeologists. Collectively FGA staff has more than a century of world–wideexperience. FGA have consented in writing to the reference to them in thisannouncement and to the estimates of oil and natural gas liquids provided. Thedefinitions for oil and gas reserves are in accordance with SEC RegulationS–X an in accordance with the guidelines of the Society of PetroleumEngineers ("SPE"). The SPE Reserve definitions can be found on the SPE websiteat spe.org. In granting its consent to the public disclosure of this press release withrespect to the Company's Trinidad operations, Petrotrin makes norepresentation or warranty as to the adequacy or accuracy of its contents anddisclaims any liability that may arise because of reliance on it. The TSX certified 51-101 certified reserves with respect to the Guatemalanproject are as reported by ASX listed Company Citation Resources (ASX: CTR).CTR has not reported 1P and 3P estimates, but Range is seeking suchinformation from CTR for future reporting purposes. The prospective resource estimates for the two Dharoor Valley prospects areinternal estimates reported by Africa Oil Corp, the operator of the jointventure, which are based on volumetric and related assessments by Gaffney,Cline & Associates. The technical information included in this Announcement with respect toGeorgia was prepared by Dr. M. Arif Yukler, COO of SOG Georgia. Dr Yukler is ageologist who is a suitably qualified person with more than 38 years ofexperience in the international oil & gas industry, and in assessinghydrocarbon reserves. Dr Yukler has advised companies and government entitiesof all size from small caps to super-majors, as well as state regulatoryauthorities on the management of resources and exploration areas. Dr. Yuklerhas reviewed the release and consents to the inclusion of the technicalinformation with respect to Georgia. Reserve information on the Putumayo 1 Well published by Ecopetrol 1987. SPE Definitions for Proved, Probable, Possible Reserves and ProspectiveResources Proved Reserves are those quantities of petroleum, which by analysis ofgeoscience and engineering data, can be estimated with reasonable certainty tobe commercially recoverable, from a given date forward, from known reservoirsand under defined economic conditions, operating methods, and governmentregulations. Probable Reserves are those additional Reserves which analysis of geoscienceand engineering data indicate are less likely to be recovered than ProvedReserves but more certain to be recovered than Possible Reserves. Possible Reserves are those additional reserves which analysis of geoscienceand engineering data indicate are less likely to be recoverable than ProbableReserves. 1P refers to Proved Reserves, 2P refers to Proved plus Probable Reserves and3P refers to Proved plus Probable plus Possible Reserves. Prospective Resources are those quantities of petroleum estimated, as of agiven date, to be potentially recoverable from undiscovered accumulations byapplication of future development projects. Prospective Resources have both anassociated chance of discovery and a chance of development. ProspectiveResources are further subdivided in accordance with the level of certaintyassociated with recoverable estimates assuming their discovery and developmentand may be sub-classified based on project maturity. Contingent Resources are those quantities of hydrocarbons which are estimated,on a given date, to be potentially recoverable from known accumulations, butwhich are not currently considered to be commercially recoverable. Undiscovered Oil-In-Place is that quantity of oil which is estimated, on agiven date, to be contained in accumulations yet to be discovered. Theestimated potentially recoverable portion of such accumulations is classifiedas Prospective Resources, as defined above.